Thursday, January 2, 2014

Flipkart abetting with its resellers in selling products above MRP.

Flipkart is aiding its resellers to sell products above their MRP. And this is a clear violation of the "Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price)" Act of 2006 under the "Consumer protection Act" of India. It's illegal in India to sell anything above it's MRP as per this act. I faced this issue with flipkart when I wanted to buy the Sony SRS-D9 2.1 speakers. Flipkart didn't have the product but one of the resellers listed the product at far above MRP, at Rs.6999. Although, I didn't buy the product because I checked with other online stores and Sony's website and learnt about the real MRP. So I had an email exchange with flipkart and told them they were abetting the criminal act and being an accomplice in violating the law. Since, they get a commission on the sales, they do benefit and therefore they are part of the crime too. And here's the email exchange with flipkart's customer care:

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Hello Sir/Madam,

I was going through your website and I stumbled upon many products on your site for which the MRP of the product listed on the website is incorrect. For instance if you look at this product, Sony SRS-D9 speakers, your website says the MRP is Rs.9999.

http://www.flipkart.com/sony-srs-d9-2-1-channel-multimedia-speakers/p/itmdczydtjy3qz8g?pid=ACCDCZXZC6UFV3PT&ref=7efc8d68-5408-4795-8cd8-065b37ef4c7e

If you go to Sony's website and check the MRP of this product, it says the MRP for Sony SRS-D9 speakers is Rs. 5490.

http://www.sony.co.in/product/srs-d9

And then your website has the audacity to say there is a 30% off on the product.

This is a clear violation of the "Consumer Goods (Mandatory Printing of Cost of Production and Maximum Retail Price)" Act of 2006 under the "Consumer protection Act" of India.

I understand that this product is listed by a reseller on your website. But isn't this amounting to cheating by flipkart as well? Your website is clearly abetting and is an accomplice, along with the reseller, in this fraudulent practice of cheating the consumers.

I just spoke to one of your customer rep's and he says that product's given to flipkart by Sony are not the same ones as listed on Sony's website. But in this case, it's clearly a reseller. So how did he get hold of this product? And if that is the case can you please pass on the product SKU details, so that I can cross-verify with Sony India?

And if that's not the case, I request flipkart to ensure that you do not list misleading MRP's on your website. If I do not see any action being taken by flipkart on this front, I will have to take legal recourse.

Also, as I understand, I am entitled to blog about it and post my findings on facebook and elsewhere.

Regards,
XYZ

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Hi XYZ,

Thank you for taking your time to write to us.

I understand your concern and would like to clarify that the price of the products are determined by a variety of factors such as updates from the brand, our dedicated marketing team and the respective sellers.

As of now, for the product (Sony SRS-D9 2.1 Channel Multimedia Speakers), the prices mentioned are the best that can be offered by our sellers and you can compare the prices with the below link

http://www.flipkart.com/sony-srs-d9-2-1-channel-multimedia-speakers/p/itmdczydtjy3qz8g?pid=ACCDCZXZC6UFV3PT&otracker=from-search&srno=t_1&query=Sony+SRS-D9+speakers&ref=f9e16c88-1ad0-45f9-a5b1-f60768d321bf

Our sellers frequently review the prices so that they remain competitive and we’re able to offer the best possible services to our valued shoppers like you. We assure you that none of the products are sold above MRP.

Offers and discounts for products vary frequently with us and are valid only for a certain period.
 

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Hello Azhar,

The specific product that we are talking about here, is indeed being offered above MRP. If you think that is not the case, can you let me know the SKU of the unit in question? I would like to cross-check with Sony India. I have been tracking this product for the past year, and the MRP from Sony for this product has remained constant throughout, at Rs. 5490. So it’s not a point about competitive pricing, market place, variations in pricing from time to time and things like
that. It’s about the law. And the reseller, by offering the product above the current MRP (and historic MRP too), is violating the law. And flipkart is enabling him to do so.

Can you give me the email address of your manager please? I want to talk to him about this.

Regards,
XYZ

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Hi XYZ,

Thank you for writing in.

I completely understand your concern and apologise for the inconvenience caused to you in this regards.

We would like to inform you that we do not have an control on the prices posted on our website by the multiple sellers.

We kindly request you to click on the link below to find the price listed by our different sellers for the same product.

http://www.flipkart.com/ps/ACCDCZXZC6UFV3PT

As of now the least price for the product "Sony SRS-D9 2.1 Channel Multimedia Speakers" is offered by the seller "TECHBAY" which is Rs.5,488/-.

We request your kind cooperation and understanding in this regard.

We hope this helps with your query. Please feel free to get back to us for any further assistance. Have a good day!

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Hello Azhar,

“We would like to inform you that we do not have an control on the prices posted on our website by the multiple sellers.”

If flipkart has no control on the prices posted by resellers on its website, then may be its time to start looking into putting some checks & controls in place.

It’s all fine as long as none of your resellers are selling above MRP. But if your resellers are selling any of their products above MRP, then flipkart will be in legal trouble. And
perhaps, for flipkart its not the legal trouble that might be an issue, but the amount of bad-propaganda and loss of consumer faith which could be an issue.

And this problem is not just about “SONY SRS-D9” speakers. I can point out many other products on your website, where your resellers are posting prices that are in excess of MRP. Also, in some cases the reseller may be selling a product below MRP, but then they are misquoting the MRP of the product to be above the real MRP. And then they offer a
discount on the misquoted MRP to bring the overall price below the real MRP. How do you think such acts by your resellers reflect on flipkart? I for sure do not remember any of the resellers names from whom I have purchased my products. It’s all part of the “flipkart experience” for me. And isn’t that experience getting screwed up?

By the way, non-of-my-business but, I just checked your website for SRS-D9 speakers now and ‘WS Retail’ has the lowest quote. So that makes me wonder, why do you
have the ‘Happy-deals’ listed on top?

Regards,
XYZ

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Response Via Email (loretta.lalram)

Hi XYZ,

We understand you concern and appreciate the feedback.

I would like to inform you that our sellers frequently review the prices so that they remain competitive and we’re able to offer the best possible services to our valued shoppers like you. We assure you that none of the products are sold above MRP.

If by chance, you are charged more than the MRP printed on the product box, we will issue a refund for the difference amount since there is some possibility that the prices for the same product can vary since our sellers procure the products from vendors in batches.

We hope this answers your query.
 

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Hi Loretta,

I am not satisfied with your answer. What if the real MRP of a product is Rs. 100. And a reseller misrepresents and claims that the MRP of the product is Rs. 200 and offers a 50% discount. So the effective price of the product is Rs. 100. For someone looking at your website, it would appear as if they are getting a 50% discount. But in reality they are buying the product at MRP and in effect, they are being mislead.

To be satisfied, I would like to hear something along the
lines of:

“Flipkart plans to put in place a system that wouldn’t allow resellers to misquote the MRP of products. And also wouldn’t allow resellers to list products above the MRP”.

Or something to that effect. You should understand that such a system is very much in the long term interest of flipkart.

Regards,
XYZ

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Hi XYZ,

Thank you for writing in.

As informed to you in the previous email, none of the products are sold above MRP.

Our sellers frequently review the prices so that they remain competitive and we’re able to offer the best possible services to our valued shoppers like you.

In case if you have paid more than the MRP mentioned on the product, kindly notify us and the difference amount shall be issued to you.

Your understanding in this regard is appreciated.
Please write back to us should you have any other questions or need further assistance.

Regards,
Imranulla Baig
Customer Support
Response received from Seller: WS Retail